The investigation identified more than 100 Wells Fargo loan officers in at least 18 branches, largely in Maryland and Virginia, who participated in this scheme. The bureau alleges that these loan officers referred thousands of loans to Genuine Title over the course of the scheme.
Under the proposed consent order filed today, Wells Fargo would be required to pay $11.1 million in redress and $24 million in civil penalties. The bureau also filed an administrative consent order against Wells Fargo prohibiting future violations.
Wells Fargo employed Todd Cohen as a loan officer from April 2009 through August 2010. The bureau alleges that, while at Wells Fargo, Cohen not only received marketing materials, he also took substantial cash payments in exchange for referrals.
Under the proposal, Cohen and Oliphant Cohen would be required to pay a civil penalty of $30,000, and Cohen would be banned from participation in the mortgage industry for two years.
“Wells Fargo holds its team members to the highest ethical standards and does not tolerate improper activities or failure to comply with rules, regulations or company policies. We have fully cooperated with the CFPB in this matter and have taken strong corrective action, including terminating team members who were involved and enhancing our procedures to provide greater oversight and monitoring of both the process and our team members,” said Vickee Adams, vice president of WFHM External Communications.
The Bureau alleges that at least six Chase loan officers in three different branches in Maryland, Virginia, and New York were involved. These officers referred settlement business to Genuine Title on almost 200 loans.
Under the proposed consent order filed today, Chase would pay approximately $300,000 in redress and $600,000 in civil penalties. Additionally, the CFPB also filed an administrative consent order against Chase prohibiting future violations.
“We are fully committed to ensuring that our mortgage bankers comply with all legal and regulatory requirements. These former employees clearly violated our policies, procedures and training,” said Jason Lobo, vice president and head of external communications with Chase Mortgage Banking.